Amazon's Custom Chip Business Crossed a $25 Billion Run Rate: Time to Load Up on Shares?

Amazon’s custom chip effort has reached a $25 billion annual run rate, signaling growing customer demand for its AI accelerators, according to a market commentary. The piece argues that Amazon is increasingly competing in AI computing by offering purpose-built chips rather than relying on general-purpose Nvidia GPUs already present in data centers. It notes that Amazon management said Trainium2 delivers about 30% better price-performance than GPUs and that it has sold out capacity. Trainium3, available at the start of 2026, sold out within months, while Trainium4 chips scheduled for launch in 2027 or 2028 have large portions of capacity already reserved. The article frames this as a tailwind for AWS as AI firms optimize compute spending.